SCHEDULES

SCHEDULE 1Consequential amendments

Part 1Income and Corporation Taxes Act 1988

1

The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.

2

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

In section 4 (construction of references in Income Tax Acts to deduction of tax), omit subsection (1B).

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8

1

Amend section 15 (Schedule A) as follows.

2

In subsection (1A)—

a

in paragraph (b) for “within the charge to income tax under Schedule A” substitute “ the profits of a UK property business within the charge to income tax under Chapter 3 of Part 3 of ITTOIA 2005 ”, and

b

for “as separate Schedule A businesses” substitute “ for the purposes of those charges as separate businesses ”.

3

Before subsection (4) insert—

3A

Subsection (1) applies for corporation tax purposes (and does not apply for income tax purposes except so far as necessary to ensure its application for corporation tax purposes by virtue of section 9).

4

In subsection (4) at the end insert “ and under Chapter 3 of Part 3 of ITTOIA 2005 (profits of a property business) ”.

9

1

Amend section 18 (Schedule D) as follows.

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F953

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4

Omit subsection (6).

10

Omit section 20 (Schedule F).

11

Omit section 21 (persons chargeable and basis of assessment under Schedule A).

12

1

Amend section 21A (computation of amount chargeable under Schedule A) as follows.

2

In subsection (2) omit “sections 112 and 113 of that Act (expenditure in connection with provision of security asset or service);”.

3

In subsection (4)—

a

omit “section 82 (interest paid to non-residents),”, and

b

omit “section 96 (farming and market gardening: relief for fluctuating profits),”.

13

In section 21B (application of other rules applicable to Case I of Schedule D)—

a

omit “, 108, 109A”,

b

after “(post-cessation receipts and expenses, etc)” insert “ , with any reference to a trade within the charge to income tax being read as a reference to a UK property business ”, and

c

omit “section 113 (effect for income tax purposes of change in the persons engaged on trade);”.

14

In section 21C (the Schedule A charge and mutual business)—

a

in subsection (1) after “the charge to” insert “ corporation ”, and

b

in subsection (4) from the beginning to “the person who would” substitute “ The company to which the profit arises is the company which would ”.

15

1

Amend section 30 (expenditure on making sea walls) as follows.

2

In subsection (1) for “he shall be” substitute “ that person shall be ”.

3

In subsection (2) for “he would be” substitute “ that person would be ”.

4

After that subsection insert—

2A

If—

a

the transferor is a company within the charge to corporation tax and the transferee is a person within the charge to income tax, or

b

the transferor is a person within the charge to income tax and the transferee is a company within the charge to corporation tax,

subsection (2) above shall apply only for the purpose of determining the amount of the payment which the company is treated as making in any year of assessment.

For any entitlement of the person within the charge to income tax to a deduction for any of the expenditure, see sections 316 and 318 of ITTOIA 2005 (corresponding income tax provision).

16

Omit sections 31A and 31B (deductions for expenditure by landlords on energy-saving items).

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25

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26

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F5

Sch. 1 paras. 26-30 repealed (with effect as mentioned in Sch. 6 of the amending Act) by Finance Act 2006 (c. 25), s. 178, {Sch. 26 Pt. 3(12) Note}

27

F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F6

Sch. 1 paras. 26-30 repealed (with effect as mentioned in Sch. 6 of the amending Act) by Finance Act 2006 (c. 25), s. 178, {Sch. 26 Pt. 3(12) Note}

28

F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F7

Sch. 1 paras. 26-30 repealed (with effect as mentioned in Sch. 6 of the amending Act) by Finance Act 2006 (c. 25), s. 178, {Sch. 26 Pt. 3(12) Note}

29

F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F8

Sch. 1 paras. 26-30 repealed (with effect as mentioned in Sch. 6 of the amending Act) by Finance Act 2006 (c. 25), s. 178, {Sch. 26 Pt. 3(12) Note}

30

F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F9

Sch. 1 paras. 26-30 repealed (with effect as mentioned in Sch. 6 of the amending Act) by Finance Act 2006 (c. 25), s. 178, {Sch. 26 Pt. 3(12) Note}

F9831

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32

1

Amend section 53 (farming and other commercial occupation of land (except woodlands)) as follows.

2

In subsection (1) after “charged to” insert “ corporation ”.

3

In subsection (2)—

a

for “person or partnership or body of persons” substitute “ company or partnership ”, and

b

after “trade” insert “ for corporation tax purposes ”.

4

In subsection (3) after “charged to” insert “ corporation ”.

33

In section 55(1) (mines, quarries and other concerns) after “charged to” insert “ corporation ”.

34

1

Amend section 56 (transactions in deposits with and without certificates or in debts) as follows.

2

In subsection (2)—

a

for “person”, in the first place where it occurs, substitute “ company ”, and

F99b

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3

In subsection (3)

a

for “does” substitute “ and section 551 of ITTOIA 2005 (charge to income tax on profits from disposal of deposit rights) do ”, and

b

in paragraph (a) for “person” substitute “ company ”.

35

1

Amend section 59 (persons chargeable: Schedule D) as follows.

2

Omit subsections (1) and (2).

3

In subsection (3)—

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b

omit “under Schedule D”.

F1384

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36

Omit sections 60 to 63A (basis of assessment for income tax: Cases I and II of Schedule D).

37

Omit section 64 (Case III assessments).

38

Omit section 65 (Cases IV and V assessments: general).

39

Omit section 65A (Case V income from land outside UK: income tax).

40

Omit section 68 (special rules where property etc. situated in Republic of Ireland).

41

Omit sections 68A to 68C (share incentive plans).

42

Omit section 69 (Case VI assessments).

43

Omit section 71 (computation of income tax where no profits in year of assessment).

F10044

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45

In section 74(1) (general rules as to deductions not allowable)—

a

for “the Tax Acts” substitute “ the Corporation Tax Acts ”,

b

after “computing the amount of the profits to be charged” insert “ to corporation tax ”,

c

for “, profession or vocation”, in each place where it occurs, substitute “ or profession ”,

d

omit paragraph (b),

e

in paragraph (j) for “his” substitute “ the creditor's ”, and

f

omit paragraph (o).

F10146

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47

Omit section 77 (incidental costs of obtaining loan finance).

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F8849

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F8850

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51

Omit section 80 (expenses connected with foreign trades etc).

52

Omit section 81 (travel between trades etc).

53

Omit section 82 (interest paid to non-residents).

54

In section 82A(1) (expenditure on research and development)—

a

for “person” substitute “ company ”,

b

for “by him or on his behalf” substitute “ by the company or on the company's behalf ”, and

c

before “tax” insert “ corporation ”.

55

In section 82B(1) (payments to research associations, universities etc.)—

a

for “person” substitute “ company ”,

b

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c

before “tax” insert “ corporation ”.

56

In section 83 (patent fees etc. and expenses) after “the profits of a trade” insert “ for the purposes of corporation tax ”.

57

1

Amend section 83A (gifts in kind to charities etc.) as follows.

2

In subsection (1) for “a person carrying on a trade, profession or vocation” substitute “ a company carrying on a trade or profession ”.

3

In subsection (2) for “the donor in the course of his trade” substitute “ the company in the course of its trade ”.

4

In subsection (3)—

a

for “the donor's” substitute “ the company's ”,

b

for “the purposes of the Tax Acts” substitute “ corporation tax purposes ”, and

c

for “the donor” substitute “ the company ”.

5

In subsection (4)—

a

after “in respect of the gift of an article” insert “ made by a company ”,

b

for “chargeable period”, in both places where it occurs, substitute “ accounting period ”,

c

for “the donor or any person connected with him” substitute “ the company or any person connected with the company ”,

d

for “the donor shall” substitute “ the company shall ”,

e

before “tax”, in both places where it occurs, insert “ corporation ”, and

f

for “he” substitute “ the company ”.

58

1

Amend section 84 (gifts to educational establishments) as follows.

2

In subsection (1)—

a

for “a person carrying on a trade, profession or vocation” substitute “ a company carrying on a trade or profession ”, and

b

for “his trade” substitute “ its trade ”.

3

In subsection (3)—

a

for “the purposes of the Tax Acts” substitute “ corporation tax purposes ”, and

b

for “his disposal” substitute “ its disposal ”.

4

In subsection (3A) for “above is—” to the end substitute “ the period of two years beginning at the end of the accounting period in which the gift is made. ”

5

Omit subsection (3B).

6

In subsection (4)—

a

after “in respect of the gift of an article” insert “ made by the donor ”,

b

for “chargeable period”, in both places where it occurs, substitute “ accounting period ”,

c

for “him” substitute “ the donor ”,

d

before “tax”, in both places where it occurs, insert “ corporation ”, and

e

for “he” substitute “ the donor ”.

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61

In section 86A (charitable donations: contributions to agent's expenses) —

a

in subsection (1) for “a person” substitute “ a company ”, and

b

in subsection (2)(a) for “, profession or vocation” substitute “ or profession ”.

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F8974

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75

Omit section 95A (creative artists: relief for fluctuating profits).

76

Omit section 96 (farming and market gardening: relief for fluctuating profits).

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F9085

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86

Omit section 107 (treatment of receipts as earned income).

87

Omit section 108 (election for carry-back).

88

Omit section 109 (charge under section 104: relief for individuals born before 6th April 1917).

89

1

Amend section 109A (relief for post-cessation expenditure) as follows.

2

Omit subsection (3).

3

In subsection (4) omit the unnumbered paragraph beginning with “If any sum”.

4

In subsection (4A) omit the unnumbered paragraph beginning with “If any sum”.

5

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10390

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91

Omit section 110A (change of residence) and the italic cross-heading before it.

F10492

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93

Omit section 112 (partnerships controlled abroad).

94

Omit section 113 (effect for income tax of change in ownership of trade, profession or vocation).

F10595

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98

F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

99

F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100

F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101

F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

102

F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

103

In section 119(1) (rent etc. payable in connection with mines, quarries and similar concerns) after “charged to” insert “ corporation ”.

104

In section 120 (rent etc. payable in respect of electric line wayleaves)—

a

in subsection (1) after “charged to” insert “ corporation ”,

b

in subsection (1A) for “chargeable period” substitute “ accounting period ”, and

c

in subsection (1A) after “charged to”, in both places where it occurs, insert “ corporation ”.

105

In section 121 (management expenses of owner or mineral rights) omit subsection (1).

106

1

Amend section 122 (relief in respect of mineral royalties) as follows.

2

In subsection (1)—

a

for the words from “a person resident” to “year of assessment or” substitute “ a company resident in the United Kingdom which in any ”,

b

omit “for the purposes of income tax, or as the case may be”,

c

for “him” substitute “ it ”, and

d

omit “year or” in both places where it occurs.

3

In subsection (2)—

a

omit the words from “brought into account” to “may be,”, and

b

for “subsection (2)” substitute “ subsection (3) ”.

4

Omit subsection (4).

F107107

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108

Omit section 127 (enterprise allowance).

109

Omit section 127A (futures and options: transactions with guaranteed returns).

110

In section 128 (commodity and financial futures etc: losses and gains) omit subsection (1).

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114

F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

115

F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

116

In section 231B(4)(b) (consequences of certain arrangements to pass on value of a tax credit) for “section 231(3)” substitute “ section 397(2) of ITTOIA 2005 ”.

117

Omit section 232 (tax credits for non-UK residents).

118

Omit section 233 (taxation of certain recipients of distributions and in respect of non-qualifying distributions).

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120

1

Amend section 250 (returns) as follows.

F1422

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3

In subsection (7) at the end insert “ of this Act or Chapter 5 of Part 4 of ITTOIA 2005 ”.

121

In section 251 (interpretation of sections 249 and 250), omit subsections (2) to (6).

122

Omit sections 251A to 251D (approved share incentive plans).

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125

F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

126

F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

127

F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

128

Omit section 314 (divers and diving supervisors).

129

Omit section 322 (consular officers and employees).

130

Omit section 324 (designated international organisations).

131

Omit section 325 (interest on deposits with National Savings Bank).

132

Omit section 326 (interest etc. under contractual savings schemes).

133

Omit sections 326A to 326D (tax-exempt special savings accounts).

134

Omit section 327 (disabled person's vehicle maintenance grant).

135

Omit section 327A (payments to adopters).

136

Omit sections 329 to 329AB (exemption of interest on damages for personal injury and personal injury damages in the form of periodical payments).

137

Omit section 331 (scholarship income).

138

Omit section 331A (student loans: certain interest to be disregarded).

139

Omit section 332(3) (expenditure and houses of ministers of religion).

140

In section 332A (venture capital trusts: reliefs) omit “and distributions by such trusts”.

141

For section 333 substitute—

333Investment plan regulations

Regulations under Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans) may include provision generally for the purpose of the administration of corporation tax in relation to plans.

142

Omit section 333A (personal equity plans: tax representatives).

143

F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

144

F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

145

1

Amend section 337 (company beginning or ceasing to carry on trade) as follows.

2

In subsection (1) after “shall be computed” insert “ for the purposes of corporation tax ”.

3

In subsection (2) after “overseas property business” insert “ (within the meaning given by section 70A(4)) ”.

146

1

Amend section 347A (general rule: annual payments) as follows.

2

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3

F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Omit subsections (4) and (5).

5

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147

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148

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149

F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

150

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151

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

152

In section 353(1) (relief for payments of interest) after “sections 359 to 368” insert “ of this Act and section 52 of ITTOIA 2005 ”.

153

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154

F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

155

In section 370(2)(b) (relevant loan interest) for the words from “either” to the end substitute “ would be eligible for relief under section 353 ”.

156

F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

157

F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

158

In section 382(3) (provisions supplementary to sections 380 and 381) omit “under the provisions of the Income Tax Acts applicable to Case I or II of Schedule D”.

159

F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

160

F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

161

In section 385(4) (carry-forward against subsequent profits) omit “under Case I of Schedule D” and, in both places where it occurs, “under that Case”.

162

In section 386(1) (carry-forward where business transferred to a company) omit “under Schedule D”.

163

F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

164

F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

165

F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

166

F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

167

F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

168

F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F143169

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

170

In section 398 (loss relief for transactions in deposits with and without certificates or in debts)—

a

F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

for “tax under Schedule D” substitute “ corporation tax under Schedule D or income tax under that Act ”.

F144171

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F108172

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F145173

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F146174

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

175

F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F166176

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

177

In section 434 (franked investment income etc.) omit subsection (1A).

F167178

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

179

1

Section 468J (dividend distributions of authorised unit trusts) is amended as follows.

2

In subsection (2) for “Tax Acts” substitute “ Corporation Tax Acts ”.

3

At the end of subsection (4) insert “(including a dividend treated as paid to a unit holder who is not liable to corporation tax)”.

180

1

Section 468L (interest distributions of authorised unit trusts) is amended as follows.

2

In subsection (1A) after “this Chapter” insert “ and Chapter 2 of Part 4 of ITTOIA 2005 (interest) ”.

3

In subsection (2) for “Tax Acts” substitute “ Corporation Tax Acts ”.

4

At the end of subsection (3) insert “(including a payment of interest treated as made to a unit holder who is not liable to corporation tax)”.

181

F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F109182

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F110183

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

184

1

Amend section 477A (building societies: regulations for deduction of tax) as follows.

2

In subsection (4)—

a

for “terminal bonus” substitute “ interest ”, and

b

for “contractual savings scheme” substitute “ SAYE savings arrangement ”.

3

Omit subsections (5) and (6).

4

In subsection (9) omit the words from “but” to the end of the subsection.

5

In subsection (10) after “this section—” insert—

“certified SAYE savings arrangement” has the meaning given by section 703 of ITTOIA 2005

185

Omit section 480C (relevant deposits: computation of tax on interest).

186

F45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

187

F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

188

1

Section 486 (industrial and provident societies and co-operative associations) is amended as follows.

2

In subsection (1)—

F147a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

for “the purposes of corporation tax” substitute “ those purposes ”.

3

In subsection (4) at the end insert “for the purposes of corporation tax”.

4

Omit subsection (5).

F111189

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F148190

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F149191

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F133F163192

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F133F163193

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F133F163194

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F150195

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

196

1

Amend section 504 (meaning of the “commercial letting of furnished accommodation”) as follows.

2

Omit subsection (4).

3

In subsection (6)—

a

omit “year of assessment or”,

b

for “person” substitute “ company ”,

c

omit “year or” in each place where it occurs,

d

for “he” substitute “ the company ”, and

e

for “him” substitute “ the company ”.

4

In subsection (6A) for “above is—” to the end substitute “ above is the period of two years beginning at the end of the accounting period in which the accommodation was let. ”

5

In subsection (7)—

a

omit “year of assessment or”, and

b

omit “year or” in both places where it occurs.

6

In subsection (8) omit “year of assessment or”.

7

In subsection (9)—

a

for “a person” substitute “ a company ”, and

b

for “he” substitute “ it ”.

197

F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F151198

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

199

F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

200

Omit section 514 (funds for reducing the national debt).

F91201

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F91202

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F91203

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

204

In section 527(4) (spreading of royalties over several years) at the end insert “ of this Act or by virtue of section 595 of ITTOIA 2005 ”.

F112205

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

206

Omit section 529 (patent income to be earned income in certain cases).

F92207

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F92208

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F92209

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80210

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80211

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80212

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80213

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80214

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80215

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80216

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80217

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80218

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80219

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80220

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F80221

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

222

1

Amend section 552 (information: duty of insurers) as follows.

2

In subsection (1) omit “within the meaning of this Chapter”.

3

In subsection (5)—

a

in paragraph (b)(ii) for “, the date” to the end of the sub-paragraph substitute “ of this Act and section 514(1) of ITTOIA 2005 (chargeable events where transaction-related calculations show gains), the date on which the year and the insurance year end; ”,

b

in paragraph (c)—

i

after “this Chapter” insert “ and Chapter 9 of Part 4 of ITTOIA 2005 ”,

ii

after “relevant capital payments” insert “ and the amount or value of any capital sums of a kind referred to in section 492(1)(b) to (e) of ITTOIA 2005 ”,

iii

in sub-paragraph (iii) after “annuity” insert “ determined in accordance with section 656 and the amount of so much of any payment previously made on account of an annuity as is exempt under section 717 of ITTOIA 2005 ”, and

iv

in sub-paragraph (v) after “year” insert “ and the total of the amounts of gains treated as arising on previous chargeable events within section 509(1) or 514(1) of ITTOIA 2005 ”,

c

for paragraph (e) substitute—

e

the number of years relevant for computing the annual equivalent of the amount of the gain for the purposes of subsection (1) of section 536 of ITTOIA 2005 (top slicing relieved liability: one chargeable event), apart from subsections (6) and (8) of that section;

d

for paragraph (f) substitute—

f

on the assumption that section 465 of ITTOIA 2005 (person liable: individuals) has effect in relation to the gain —

i

whether an individual would fall to be treated as having paid income tax at the lower rate on the amount of the gain in accordance with section 530 of that Act; and

ii

if so, except in a case where paragraph (c) above applies, the amount of such tax that would fall to be so treated as paid.

4

In subsection (6)—

a

in paragraph (b)—

i

after “section 546C(7)(a)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”, and

ii

after “year” insert “ (and the insurance year) ”, and

b

in paragraph (c) after “section 546C(7)(a)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”.

5

In subsection (7)(b)—

a

after “section 546C(7)(a)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”, and

b

after “year” insert “ (and the insurance year) ”.

6

In subsection (9)(a)—

a

after “section 546C(7)(b)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”, and

b

after “occurs” insert “ (and the end of the insurance year mentioned in section 514(3) and (4) of ITTOIA 2005) ”.

7

In subsection (10)—

a

in the definition of “amount” after “section 553(3)” insert “ of this Act and section 528 of ITTOIA 2005 ”, and

b

insert in the appropriate place—

“chargeable event” means an event which is a chargeable event within the meaning of this Chapter and Chapter 9 of Part 4 of ITTOIA 2005;

223

In section 552ZA(3) (information: supplementary provisions) after “section 546C(7)(a)” insert “ of this Act and section 514(1) of ITTOIA 2005 ”.

224

1

Amend section 552A (tax representatives) as follows.

2

In subsection (5) omit “in relation to which this Chapter has effect and”.

3

In subsection (12) insert in the appropriate place—

“capital redemption policy” means a capital redemption policy in relation to which this Chapter and Chapter 9 of Part 4 of ITTOIA 2005 have effect;

“contract for a life annuity” means a contract for a life annuity in relation to which this Chapter and Chapter 9 of Part 4 of ITTOIA 2005 have effect;

“policy of life insurance” means a policy of life insurance in relation to which this Chapter and Chapter 9 of Part 4 of ITTOIA 2005 have effect;

225

In section 552B (duties of overseas insurers' tax representatives) after subsection (5) insert—

5A

In subsection (5) “chargeable event” has the same meaning as in section 552 (see subsection (10) of that section).

F81226

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F81227

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F81228

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

229

Omit section 554 (borrowings on life policies to be treated as income in certain cases).

F113230

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231

Omit section 557 (charge on profits).

232

In section 568(1) (deductions from profits of contributions paid under certified schemes)—

a

after “section 74” insert “ of this Act or section 33 of ITTOIA 2005 ”, and

b

after “Case I of Schedule D,” insert “ or under Part 2 of ITTOIA 2005, ”.

233

In section 570(4) (payments under certified schemes which are not repayments of contributions) for “any of the provisions of section 113 or section 337(1)” substitute “ section 337(1) above or section 18 of ITTOIA 2005 (companies beginning or ceasing to carry on trade) ”.

F93234

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F93235

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F93236

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

237

In section 578(1) (housing grants) for “any tax purpose” substitute “ corporation tax purposes ”.

F114238

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F115239

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

240

Omit sections 580A to 580C (relief from tax on annual payments under certain insurance policies and immediate needs annuities).

241

Omit section 581 (borrowing in foreign currency by local authorities and statutory corporations).

242

F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F116243

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

244

Omit section 583 (Inter-American Development Bank).

F117245

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246

Omit section 585 (relief from tax on delayed remittances).

F118247

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F119248

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

249

F50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F120250

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F121251

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

252

1

Amend section 591C (cessation of approval: tax on certain schemes) as follows.

2

In subsection (1) for “tax shall be charged” substitute “ income tax shall be charged under and ”.

3

In subsection (2) omit “under Case VI of Schedule D”.

4

In subsection (6A)(c)(iii) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”.

253

1

Amend section 592 (exempt approved schemes) as follows.

2

In subsection (3)—

a

after “the schemes” insert “ , are not relevant foreign income ”, and

b

for “Case VI of Schedule D” substitute “ Chapter 8 of Part 5 of ITTOIA 2005 (income not otherwise charged) ”.

3

In subsection (4)(a) after “for the purposes of” insert “ Part 2 of ITTOIA 2005 or ”.

254

1

Amend section 598 (charge to tax: repayment of employee's contributions) as follows.

2

In subsection (1) after “this section,” insert “ income ”.

3

In subsection (2) for the words from the beginning to “Schedule D” substitute “ The person liable for any tax chargeable under this section shall be the administrator of the scheme ”.

255

1

Amend section 599 (charge to tax: commutation of entire pension in special circumstances) as follows.

2

In subsection (1) after “whether wholly or not, under the rule,” insert “ income ”.

3

In subsection (1B) before “tax” insert “ income ”.

4

In subsection (3) for the words from the beginning to “Schedule D on that amount,” substitute “ The person liable for any tax chargeable under this section shall be the administrator of the scheme ”.

256

In section 599A (charge to tax: payments out of surplus funds) for subsection (2) substitute—

2

On the making of a payment to which subsection (1) above applies—

a

income tax is charged at the relevant rate on such amount as, after deduction of tax at that rate, would equal the amount of the payment, and

b

the person liable for the tax so charged is the administrator of the scheme.

257

In section 601(5)(b) (charge to tax: payments to employers) for “to tax on the amount of the payment under Case VI of Schedule D” substitute

—

i

to income tax on the full amount of the payment arising in the year of assessment; or

ii

to corporation tax on the amount of the payment under Case VI of Schedule D

258

In section 602(1)(a) (regulations relating to pension fund surpluses) omit “under Case VI of Schedule D”.

259

1

Amend section 607 (pilots' benefit fund) as follows.

2

In subsection (2)(c) for “the provisions of Case II of Schedule D” substitute “ such of the provisions of Part 2 of ITTOIA 2005 as apply in calculating the profits of a profession ”.

3

In subsection (3)(a) for “in assessing tax under Schedule D” substitute “ in calculating the profits of the profession ”.

260

In section 608(2) (superannuation funds approved before 6th April 1980)—

a

in paragraph (b)—

i

after “commissions” insert “ which are not relevant foreign income and ”, and

ii

for “Case VI of Schedule D” substitute “ Chapter 8 of Part 5 of ITTOIA 2005 ”, and

b

in paragraph (c) for the words from “under” onwards substitute “ under Chapter 11 of Part 4 of ITTOIA 2005 (transactions in deposits) by virtue of a disposal of deposit rights falling within section 552(1)(a) or (b) of that Act ”.

261

In section 614(2A) (exemptions and reliefs in respect of income from investments etc. of certain pension schemes) for the words from “paragraph 1” to “(relevant” substitute “ Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply ”.

F122262

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

263

1

Amend section 623 (relevant earnings) as follows.

2

In subsection (2)—

a

in paragraph (c) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”, and

b

for paragraph (d) substitute—

d

income to which section 833(5B) (patent income) applies;

3

In subsection (6)—

a

in paragraph (a) for “section 74(m), (p) or (q)” substitute “ section 51 of ITTOIA 2005 ”, and

b

after the “or” at the end of that paragraph insert—

aa

deductions in respect of any annuity or other annual payment (other than interest) payable out of his profits; or

264

In section 644(2) (meaning of “relevant earnings”)—

a

in paragraph (c) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”, and

b

for paragraph (d) substitute—

d

income to which section 833(5B) (patent income) applies.

265

In section 646(2) (meaning of “relevant net earnings”)—

a

in paragraph (a) for “section 74(m), (p) or (q)” substitute “ section 51 of ITTOIA 2005 ”,

b

after that paragraph insert—

aa

deductions in respect of any annuity or other annual payment (other than interest) payable out of his profits;

c

in paragraph (bb) for “section 332(3) of this Act” substitute “ section 159 of ITTOIA 2005 ”.

266

1

Amend section 648B (return of contributions after pension date) as follows.

2

In subsection (1) for “Tax” substitute “ Income tax ”.

3

In subsection (2) for the words from the beginning to “Schedule D” substitute “ The person liable for any tax chargeable under this section shall be the administrator of the scheme ”.

267

1

Amend section 650A (charge on withdrawal of approval from arrangements) as follows.

2

In subsection (1) for “tax shall be charged” substitute “ income tax shall be charged under and ”.

3

In subsection (2) omit “under Case VI of Schedule D”.

268

F831

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F822

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F84269

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

270

F52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

271

Omit sections 660A and 660B (income arising under settlement where settlor retains an interest and payments to unmarried minor children of settlor).

272

1

Amend section 660C (nature of charge on settlor) as follows.

2

Omit subsections (1) to (2).

3

F53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

273

Omit sections 660D to 660G (settlements: supplementary provisions etc.).

274

Omit section 677 (sums paid to settlor otherwise than as income).

275

Omit section 678 (capital sums paid by body connected with settlement).

276

Omit sections 682 and 682A (ascertainment of undistributed income and supplementary provisions for Chapter 1B).

277

F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

278F56

279

Omit section 688 (schemes for employees and directors to acquire shares).

F152280

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

281F57

282

F58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

283

F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94284

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94285

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94286

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94287

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

288

F60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

289

Omit section 699 (relief from higher rate tax for inheritance tax on accrued income).

F123290

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F153291

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F124292

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

293

F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

294

F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

295

F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

296

F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

297

F65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

298

F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

299

F67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F154300

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

301

Omit section 730C (exchanges of gilts: traders etc.).

F85302

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F85

Sch. 1 para. 302 omitted (with effect in accordance with s. 66(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 66(4)(k)

F86303

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:
Amendments (Textual)
F86

Sch. 1 para. 303 omitted (with effect in accordance with s. 66(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 66(4)(k)

304

F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

305

F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

306

F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

307

F71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F130308

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F130309

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

310

In section 774(1) (transactions between dealing company and associated company)—

a

after “shall be chargeable” insert “ to tax ”, and

b

for “under Case VI of Schedule D” substitute “ (in the case of corporation tax, under Case VI of Schedule D) ”.

311

F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F155312

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F156313

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134F164314

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134F164315

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134F164316

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134F164317

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134F164318

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134F164319

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F157F134320

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F135321

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F135322

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F135323

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

324

In section 806K(2) (application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere) after paragraph (b) insert—

bb

in relation to income tax, take any reference to a dividend chargeable under Case V of Schedule D as a reference to a dividend chargeable under Chapter 4 of Part 4 of ITTOIA 2005;

F158325

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

326

In section 812(1) (withdrawal of right to tax credit of certain non-resident companies connected with unitary states)—

a

for “section 231(3)” substitute “ section 397(2)(a) of ITTOIA 2005 ”, and

b

for “or, where” substitute “ nor, by virtue of section 30(9) of the Finance (No. 2) Act 1997, where ”.

F125327

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

328

F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

329

F74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

330

In section 821(1) (under-deductions from payments made before passing of annual Act)—

a

after “assessment” insert “ or accounting period ”,

b

after “quarterly payments” insert “ (or half-periodic or quarterly payments) ”,

c

after “income” insert “ or corporation ”,

d

after “year”, in the second and third places where it occurs, insert “ or period ”,

e

after “charged”, in the fourth place where it occurs, insert “ in respect of those payments to income tax under Chapter 2 of Part 4 of ITTOIA 2005 (interest) or shall be charged to corporation tax under ”, and

f

omit “in respect of those payments”.

331

1

Section 824 (repayment supplements: individuals and others) is amended as follows.

2

In subsection (4A)(b) for “section 231” substitute “ section 397(1) of ITTOIA 2005 ”.

3

Omit subsection (8).

4

In subsection (9) for “to (8)” substitute “ to (7) ”.

F126332

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

333

F75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

334

1

Amend section 828 (orders and regulations made by the Treasury or the Board) as follows.

2

In subsection (4) omit “324,”.

3

In subsection (5)—

a

F76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

F76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

for “that Act” substitute “ either of those Acts ”.

F127335

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

336

In section 831(3) (interpretation of ICTA) after the entry relating to “ITEPA 2003” insert—

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

F159337

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

338

F77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

339

F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

340

F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F160341

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

342

Omit Schedule 4A (creative artists: relief for fluctuating profits).

343

1

Amend Schedule 5 (treatment of farm animals etc for the purposes of Case I of Schedule D) as follows.

2

In paragraph 1—

a

after “profits” insert “ chargeable to corporation tax ”, and

b

for “his” substitute “ its ”.

3

In paragraph 2—

a

in sub-paragraph (1) for “he” substitute “ the farmer ”,

b

omit sub-paragraphs (3)(a), (4)(a) and (5), and

c

in sub-paragraph (6), omit the definitions of “commencement year” and “qualifying year of assessment”.

4

In paragraph 3—

a

in sub-paragraph (1) after “profits” insert “ chargeable to corporation tax ”,

b

in sub-paragraph (3)(b) for “him” substitute “ the farmer ”,

c

in sub-paragraph (9)(a) for “his” substitute “ the seller's ”, and

d

in sub-paragraph (10)(b) for “him” substitute “ the farmer ”.

5

In paragraph 4—

a

for “him” substitute “ the farmer ”, and

b

for “he” substitute “ the farmer ”.

6

In paragraph 5(1) after “profits” insert “ chargeable to corporation tax ”.

7

In paragraph 6—

a

in sub-paragraph (1)—

i

for “his” substitute “ its ”, and

ii

for “him” substitute “ the farmer ”,

b

omit sub-paragraphs (2)(a), and (3)(a), and

c

in sub-paragraph (4), omit the definition of “qualifying year of assessment”.

8

In paragraph 8—

a

for “him”, in each place it occurs, substitute “ the farmer ”,

b

in sub-paragraph (7)—

i

before “tax” insert “ corporation ”, and

ii

for “chargeable period” substitute “ accounting period ”.

9

In paragraph 11 for “chargeable period” substitute “ accounting period ”.

344

Omit Schedule 5AA (guaranteed returns on transactions in futures and options).

345

Omit Schedule 15A (contractual savings schemes).

346

1

Amend Schedule 15B (venture capital trusts: relief from income tax) as follows.

2

In paragraph 4(1) and (2) omit “under Case VI of Schedule D”.

3

Omit paragraphs 7 to 9.

F161347

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

348

1

Amend Schedule 22 (reduction of pension fund surpluses) as follows.

2

In paragraph 7(3)(c) for the words from “section 56” to “that section” substitute “ section 551 of ITTOIA 2005 shall by virtue of section 56(3)(b) of this Act ”.

3

After paragraph 7 insert—

7A

1

This paragraph applies if a calculation falls to be made under paragraph 7 above in a case where—

a

relief is to be given under section 454 of ITTOIA 2005 (listed deeply discounted securities held since 26th March 2003: relief for losses) in respect of a loss sustained on the disposal of securities, and

b

had there been a profit on the disposal it would have been eligible for relief from tax for the year of assessment in which the loss is sustained by virtue of section 592(2).

2

That relief is to be given before the calculation under paragraph 7 above is made.

3

Then the amount of income to which the specified percentage is applied by virtue of sub-paragraph (3)(a) of that paragraph is reduced by the amount of that relief.

4

In this paragraph “disposal” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005.

349

In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable profits etc. of foreign companies) after “the Capital Allowances Act” insert “ or section 48 of ITTOIA 2005 ”.

F131350

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F162351

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

352

1

Amend Schedule 30 (transitional provisions and savings) as follows.

F1282

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Omit paragraphs 18 and 18A.